The Ministry of Foreign Affairs (MoFA) is reporting today the Federation has been informed by the State Council of the Peoples Republic of China (PRC) that a de facto “State of War” now officially exists between that Asian nation and the United States of America.

According to this report, following the “provisions and protocols” of the 8 May 2015 Russian-Chinese Cyber-Security Agreement that states a signatory to this pact that anticipates the outbreak of hostilities is obligated to immediately inform the other so that “war preparations” needed to protect critical infrastructure can be undertaken, the PRC has informed the Federation that these “conditions now exist”.

Leading to this grave war warning from the PRC, this report explains, has been the catastrophic loss of over $3.7 trillion in wealth from Chinese stock markets over the past fortnight that has seen them plunge by over 30% and has led to panic among financial investors and ordinary citizens alike.

As to the cause of this devastating melt-down, this report continues, PRC experts have stated that “evil” market forces are going short to ruin the Chinese economy, and even suspecting Western-backed investment “predators” of lurking behind the turmoil, with US banking giant Morgan Stanley among the names mentioned.

Similarly, this report notes, five professors from China’s top universities issued a widely distributed public letter on 2 July alleging sinister market forces were exploiting weaknesses in China’s financial system for profit, comparing the situation to when President Obama’s “puppet master”, financier George Soros, and others bet against East Asian currencies during the 1997-98 Asia Financial Crisis.

“Hackers working for the Chinese state breached the computer system of the Office of Personnel Management in December, U.S. officials said Thursday (4 June) , and the agency will notify about 4 million current and former federal employees that their personal data may have been compromised.

The hack was the largest breach of federal employee data in recent years. It was the second major intrusion of the same agency by China in less than a year and the second significant foreign breach into U.S. government networks in recent months.”

And making this situation even more fraught with danger, MoFA experts in this report warn, in a further response to the Obama regimes attacking them, two senior Chinese military leaders yesterday called on the People’s Liberation Army to beef up its naval capacity and combat readiness amid a higher risk of “warfare on the doorstep”.

These Chinese generals further stated, “There have been profound challenges from territorial disputes on our country’s periphery, geopolitical competition among big powers, and ethnic and religious friction. Tensions in surrounding hot spots are also on the rise, and the risk of chaos and warfare on our doorstep has increased. We should be more vigilant … and put combat preparedness at the front of our minds.”

“When the history of 2014 is written, it will take note of a large fact that has received little attention: 2014 was the last year in which the United States could claim to be the world’s largest economic power. China enters 2015 in the top position, where it will likely remain for a very long time, if not forever. In doing so, it returns to the position it held through most of human history.”

“When Rand released a report in 2000 describing the potential outcome of a Sino-American conflict over Taiwan, the United States won the war handily. Nine years later, the nonpartisan think tank revised its analysis, accounting for Beijing’s updated air force, its focus on cyber warfare and its ability to use ballistic missiles to take out American satellites.

Rand’s 2009 conclusion: “The United States would ultimately lose an air war, and an overall conflict would be more difficult and costly than many had imagined.”